Assessing Unemployment in the Caucasus and Central Asia

According to the International Monetary Fund, assessing unemployment in the vast region of Caucasus and Central Asia is difficult because there is no reliable information. These are potential hot spots for social and political unrest. Creating job in this region could help keep the peace

Masood Ahmed writes on iMFDirect blog:

Masood Ahmed

It is difficult to determine the extent of unemployment in the region as data are sparse. What is clear, though, is that jobs are lacking throughout the region. This problem is not always evident in the official unemployment figures, which are generally low, especially in Central Asia. But these figures mask the fact that there is a lot of underemployment, particularly in rural areas.

In the south Caucasus, for which more data are available, unofficial estimates point to unemployment rates ranging from 10% to as much as 30%. In all countries, youth unemployment rates are even higher—close to 15% in Azerbaijan, and in the range of 35–40% in Georgia and Armenia.

In addition, in several countries in the region—especially Tajikistan and Kyrgyz Republic—the lack of jobs has led many to seek work in other countries, especially Russia. This is an important vulnerability, because if the Russian economy slows down, these workers will return home, adding to poverty and social problems.